Newport Beach Prices Dropping

It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.
 
[quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?
 
[quote author="awgee" date=1249462217][quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?</blockquote>


The posts on the demise of PIMCO, Newport Beach, and Irvine for one.
 
[quote author="RobertLarsen" date=1249517477][quote author="awgee" date=1249462217][quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?</blockquote>


The posts on the demise of PIMCO, Newport Beach, and Irvine for one.</blockquote>
How is predicting the demise of PIMCO claiming the absolute destruction of cities?



I do not know if you are aware or if you even care, but there were many realtors encouraging folks to buy homes in 2005 and 2006 when the potential buyers could not afford it. Some of those folks are readers and posters here who claim that the only thing that saved their life savings was the IHB and a voice of reason, what you are calling "freaking out". Now there are many realtors who are calling the bottom and are encouraging folks to buy homes they can not afford to lose their equity in.



Are you buying right now?



Or are you only willing to gamble with somone else's life savings?
 
[quote author="awgee" date=1249524728][quote author="RobertLarsen" date=1249517477][quote author="awgee" date=1249462217][quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?</blockquote>


The posts on the demise of PIMCO, Newport Beach, and Irvine for one.</blockquote>
How is predicting the demise of PIMCO claiming the absolute destruction of cities?



I do not know if you are aware or if you even care, but there were many realtors encouraging folks to buy homes in 2005 and 2006 when the potential buyers could not afford it. Some of those folks are readers and posters here who claim that the only thing that saved their life savings was the IHB and a voice of reason, what you are calling "freaking out". Now there are many realtors who are calling the bottom and are encouraging folks to buy homes they can not afford to lose their equity in.



Are you buying right now?



Or are you only willing to gamble with somone else's life savings?</blockquote>


I believe it was this quote - "Prices will collapse, yes collapse, in Newport Beach when PIMCO collapses. And it will."



Obviously not a verbatim quote of 'destruction' of cities, but pretty close.
 
[quote author="Joe33" date=1249526009][quote author="awgee" date=1249524728][quote author="RobertLarsen" date=1249517477][quote author="awgee" date=1249462217][quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?</blockquote>


The posts on the demise of PIMCO, Newport Beach, and Irvine for one.</blockquote>
How is predicting the demise of PIMCO claiming the absolute destruction of cities?



I do not know if you are aware or if you even care, but there were many realtors encouraging folks to buy homes in 2005 and 2006 when the potential buyers could not afford it. Some of those folks are readers and posters here who claim that the only thing that saved their life savings was the IHB and a voice of reason, what you are calling "freaking out". Now there are many realtors who are calling the bottom and are encouraging folks to buy homes they can not afford to lose their equity in.



Are you buying right now?



Or are you only willing to gamble with somone else's life savings?</blockquote>


I believe it was this quote - "Prices will collapse, yes collapse, in Newport Beach when PIMCO collapses. And it will."



Obviously not a verbatim quote of 'destruction' of cities, but pretty close.</blockquote>
I was wrong. Pimco will be fine. And following, the many folks in NB who have there money invested with Billy will be fine also. RE prices in NB will keep falling. I have never claimed the absolute destruction of any city, including NB. The remark you are referring to regards prices only. It is not pretty close or anywhere close. The collapse of re prices does not lead to the absolute destruction of cities and anybody who says so is a fool. Putting words in other's mouths in order to try to make an argument is called a straw man argument, and is reverted to by someone with no real argument.
 
I have actually been following a couple of the communities in Newport, and I am definitely seeing some price reductions. Especially when there are 3 or 4 houses on the same street that are for sale at the same time.
 
[quote author="awgee" date=1249532501][quote author="Joe33" date=1249526009][quote author="awgee" date=1249524728][quote author="RobertLarsen" date=1249517477][quote author="awgee" date=1249462217][quote author="RobertLarsen" date=1249459155]It's hilarious to read all the original posts back in january and february when people were freaking out, claiming the absolute destruction of cities.</blockquote>


Can you show one of the posts you are referring to?</blockquote>


The posts on the demise of PIMCO, Newport Beach, and Irvine for one.</blockquote>
How is predicting the demise of PIMCO claiming the absolute destruction of cities?



I do not know if you are aware or if you even care, but there were many realtors encouraging folks to buy homes in 2005 and 2006 when the potential buyers could not afford it. Some of those folks are readers and posters here who claim that the only thing that saved their life savings was the IHB and a voice of reason, what you are calling "freaking out". Now there are many realtors who are calling the bottom and are encouraging folks to buy homes they can not afford to lose their equity in.



Are you buying right now?



Or are you only willing to gamble with somone else's life savings?</blockquote>


I believe it was this quote - "Prices will collapse, yes collapse, in Newport Beach when PIMCO collapses. And it will."



Obviously not a verbatim quote of 'destruction' of cities, but pretty close.</blockquote>
I was wrong. Pimco will be fine. And following, the many folks in NB who have there money invested with Billy will be fine also. RE prices in NB will keep falling. I have never claimed the absolute destruction of any city, including NB. The remark you are referring to regards prices only. It is not pretty close or anywhere close. The collapse of re prices does not lead to the absolute destruction of cities and anybody who says so is a fool. Putting words in other's mouths in order to try to make an argument is called a straw man argument, and is reverted to by someone with no real argument.</blockquote>


Hey, I am not making the argument, I was just pointing out what the other poster was likely referring to.



Agreed that the high end has nowhere to go but down.



And I appreciate it when somebody can admit that a prior forecast didn't pan out. Bravo to you for that.
 
Evidence that top end is immune (just 11.5% down) and that NB average sales price will shoot through the roof in August 2009:



<blockquote>

Pimco's Gross pays $23 million to do a tear-down

August 14, 2009 | 12:12 pm



Pimco bond guru Bill Gross is willing to do his part to help the Southern California construction industry.



From Bloomberg News:



Bill Gross, who runs the world?s largest bond fund at Pacific Investment Management Co., bought a home for $23 million on a gated island in Newport Beach.



The 11,000-square-foot Georgian-style mansion on Harbor Island has nine bedrooms and 12 baths and comes with 112 feet of waterfront that can accommodate two yachts up to 100 feet in length, said Bill Cote, a Realtor with First Team Estates in Newport Beach, who represented the seller.



Gross, whose fortune is estimated by Forbes magazine at $2 billion, becomes the third billionaire to own property on the island, which has 30 homes, Cote said. He joins Irvine Co. Chairman Donald Bren, whose worth is estimated at $12 billion by Forbes, and George Argyros, chairman of property company Arnall & Affiliates, with a fortune estimated at $1.8 billion.



Gross and his wife, Sue, plan to tear down the home to build a more contemporary mansion, Cote said. The original asking price of the property, which was owned by the estate of Elizabeth Colyear Vincent, who died in 2008, was $26 million.



The price was cut because of market conditions and the fact that there are few buyers with the resources of Gross, who paid cash for the property, Cote said.



"He didn?t have to finance it," Cote said. "Bill has done well."



Gross currently lives in an oceanfront mansion in Laguna Beach, south of Newport.





Gross didn?t return an e-mail message seeking comment. Realtor John McMonigle, whose company the McMonigle Group represented Gross in the purchase, declined to comment on the sale, citing a confidentiality agreement.



The Wall Street Journal earlier reported the transaction.



-- Tom Petruno

</blockquote>
 
[quote author="earthbm" date=1250813028]Evidence that top end is immune (just 11.5% down) and that NB average sales price will shoot through the roof in August 2009:



<blockquote>

Pimco's Gross pays $23 million to do a tear-down

August 14, 2009 | 12:12 pm



Pimco bond guru Bill Gross is willing to do his part to help the Southern California construction industry.



From Bloomberg News:



Bill Gross, who runs the world?s largest bond fund at Pacific Investment Management Co., bought a home for $23 million on a gated island in Newport Beach.



The 11,000-square-foot Georgian-style mansion on Harbor Island has nine bedrooms and 12 baths and comes with 112 feet of waterfront that can accommodate two yachts up to 100 feet in length, said Bill Cote, a Realtor with First Team Estates in Newport Beach, who represented the seller.



Gross, whose fortune is estimated by Forbes magazine at $2 billion, becomes the third billionaire to own property on the island, which has 30 homes, Cote said. He joins Irvine Co. Chairman Donald Bren, whose worth is estimated at $12 billion by Forbes, and George Argyros, chairman of property company Arnall & Affiliates, with a fortune estimated at $1.8 billion.



Gross and his wife, Sue, plan to tear down the home to build a more contemporary mansion, Cote said. The original asking price of the property, which was owned by the estate of Elizabeth Colyear Vincent, who died in 2008, was $26 million.



The price was cut because of market conditions and the fact that there are few buyers with the resources of Gross, who paid cash for the property, Cote said.



"He didn?t have to finance it," Cote said. "Bill has done well."



Gross currently lives in an oceanfront mansion in Laguna Beach, south of Newport.





Gross didn?t return an e-mail message seeking comment. Realtor John McMonigle, whose company the McMonigle Group represented Gross in the purchase, declined to comment on the sale, citing a confidentiality agreement.



The Wall Street Journal earlier reported the transaction.



-- Tom Petruno

</blockquote></blockquote>


Dunno about that, read about it, sounded like it was the kind of lot that rarely comes for sale (double lot, lots of space to park boats), so if you want something like that, gotta buy it whenever it comes up on sale (estate sale in this case after former owner passed away).
 
[quote author="Anonymous" date=1250815469][quote author="earthbm" date=1250813028]Evidence that top end is immune (just 11.5% down) and that NB average sales price will shoot through the roof in August 2009:



<blockquote>

Pimco's Gross pays $23 million to do a tear-down

August 14, 2009 | 12:12 pm



Pimco bond guru Bill Gross is willing to do his part to help the Southern California construction industry.



From Bloomberg News:



Bill Gross, who runs the world?s largest bond fund at Pacific Investment Management Co., bought a home for $23 million on a gated island in Newport Beach.



The 11,000-square-foot Georgian-style mansion on Harbor Island has nine bedrooms and 12 baths and comes with 112 feet of waterfront that can accommodate two yachts up to 100 feet in length, said Bill Cote, a Realtor with First Team Estates in Newport Beach, who represented the seller.



Gross, whose fortune is estimated by Forbes magazine at $2 billion, becomes the third billionaire to own property on the island, which has 30 homes, Cote said. He joins Irvine Co. Chairman Donald Bren, whose worth is estimated at $12 billion by Forbes, and George Argyros, chairman of property company Arnall & Affiliates, with a fortune estimated at $1.8 billion.



Gross and his wife, Sue, plan to tear down the home to build a more contemporary mansion, Cote said. The original asking price of the property, which was owned by the estate of Elizabeth Colyear Vincent, who died in 2008, was $26 million.



The price was cut because of market conditions and the fact that there are few buyers with the resources of Gross, who paid cash for the property, Cote said.



"He didn?t have to finance it," Cote said. "Bill has done well."



Gross currently lives in an oceanfront mansion in Laguna Beach, south of Newport.





Gross didn?t return an e-mail message seeking comment. Realtor John McMonigle, whose company the McMonigle Group represented Gross in the purchase, declined to comment on the sale, citing a confidentiality agreement.



The Wall Street Journal earlier reported the transaction.



-- Tom Petruno

</blockquote></blockquote>


Dunno about that, read about it, sounded like it was the kind of lot that rarely comes for sale (double lot, lots of space to park boats), so if you want something like that, gotta buy it whenever it comes up on sale (estate sale in this case after former owner passed away).</blockquote>


Still, you've got to admit that a $23 million dollar tear down is fairly silly.
 
There is a short sale in the Port Streets that I thought I'd point out. 1962 Port Trinity (http://www.redfin.com/CA/Newport-Beach/1962-Port-Trinity-Pl-92660/home/4720199) is a 4 bedroom, 2,800 sq ft house on a 8,800 sq ft lot that some Kool-Aid drinker bought for $1.75 million in 2005 (whoops!). It is now a short sale at $1.199 million. We went to the open house this weekend, and while it is a nice house the layout is kind of strange, with 2 bedrooms upstairs and 2 bedrooms downstairs, and the large upstairs master does not have its own bathroom. But it is still interesting to see a nice, "inner loop" house in this area break below the $1.2 million price level....
 
I went to the 1962 Port Trinity open house too. It is indeed a strange layout. I think what happened there was that the second floor was added on top of the garage some time in the 90s. The agent claimed that the house would go for 1.2-1.3M, and he's probably right, if the bank agrees, that is. FR shows that the liens on the house sum up to almost 1.5M, not sure how current that info is. I really liked that neighborhood though. Unfortunately, even there most of the houses have the garages in front, blech...



Now, that would be a nice tear down, cause the lot is nice, but not for 1.2M. There's another house in that area, I don't have the address, some "Tuscan" eyesore built in the 60s on a large lot for 1.3M that would also be a good tear down.
 
[quote author="hedgehog" date=1250823819]I went to the 1962 Port Trinity open house too. It is indeed a strange layout. I think what happened there was that the second floor was added on top of the garage some time in the 90s. The agent claimed that the house would go for 1.2-1.3M, and he's probably right, if the bank agrees, that is. FR shows that the liens on the house sum up to almost 1.5M, not sure how current that info is. I really liked that neighborhood though. Unfortunately, even there most of the houses have the garages in front, blech...



Now, that would be a nice tear down, cause the lot is nice, but not for 1.2M. There's another house in that area, I don't have the address, some "Tuscan" eyesore built in the 60s on a large lot for 1.3M that would also be a good tear down.</blockquote>


It will be interesting to see what this goes for - all of the people I spoke with when we were touring the house were also scratching their heads about the layout. The agent told me that he expected "multiple offers above the asking price," which I have certainly heard before (gotta love agents) but unfortunately in this neighborhood he is probably right.



I think I know the other house you mentioned - it is on Lighthouse Lane in CDM, not in the Port Streets. It looks pretty darn ugly from the front - have you seen the inside? Just curious if it is a workable floor plan, or a teardown as you mentioned. Kind of hard to pony up for a teardown when you spend $1.3 million on a house, unless you are Bill Gross of PIMCO!
 
You are referring to 2808 Lighthouse Lane in CDM's Harbor View homes. I saw that house a couple of years ago when it was listed for $1.8 million or so. It is in TOTAL need of remodel. The owners want to retire to that LeisureWorld (or whatever it's called) in Laguna Hills. I went there when it was that very hot summer and there's no air conditioning there, and it was stifling in the house. The lot size is large, however, it is very near San Joaquin Hills road and it is very noisy. But worse, when you go to the living room and look out the window, you are seeing this huge eyesore of a very big power line (not the wood kind, but the big metal ones you see near Columbus Grove). It is smack in your line of vision.



I remember the realtor telling me that the owner won't accept anything except "if it has a 7 in it" (ie $1.7 million or better). He can't even sell the place for $1.3 million.
 
<a href="http://www.redfin.com/CA/Newport-Beach/1930-Port-Seabourne-Way-92660/home/4718882">1930 PORT SEABOURNE WAY went back to the bank for $1.205M</a>. Looks like they never got around to the "online auction" and the bank beat them to it. I'm sure the bank feels like a winner too.
 
[quote author="graphrix" date=1253593617]<a href="http://www.redfin.com/CA/Newport-Beach/1930-Port-Seabourne-Way-92660/home/4718882">1930 PORT SEABOURNE WAY went back to the bank for $1.205M</a>. Looks like they never got around to the "online auction" and the bank beat them to it. I'm sure the bank feels like a winner too.</blockquote>


Funny, I just ordered the auction package on this....oh well. What do you think will happen now - the bank will relist this for sale at some marked up price? I'm not sure how much profit will be in it for them. There have been some strange happennings in the Port Streets lately with the $1.2 million short sale at Port Trinity, etc. The large 4,400 sq foot house on Port Carlisle also looks like it is in escrow now - the asking price was about $360/ft so it will be interesting to see what this closes for.....
 
[quote author="JoonB" date=1250838949]You are referring to 2808 Lighthouse Lane in CDM's Harbor View homes. I saw that house a couple of years ago when it was listed for $1.8 million or so. It is in TOTAL need of remodel. The owners want to retire to that LeisureWorld (or whatever it's called) in Laguna Hills. I went there when it was that very hot summer and there's no air conditioning there, and it was stifling in the house. The lot size is large, however, it is very near San Joaquin Hills road and it is very noisy. But worse, when you go to the living room and look out the window, you are seeing this huge eyesore of a very big power line (not the wood kind, but the big metal ones you see near Columbus Grove). It is smack in your line of vision.



I remember the realtor telling me that the owner won't accept anything except "if it has a 7 in it" (ie $1.7 million or better). He can't even sell the place for $1.3 million.</blockquote>
Ahh yes, you gotta love those myopic sellers who think their properties are worth more than any other closed comp (idiot listing agent of course help to feed that false reality for these sellers so they can get the listings). I still don't have any idea why an agent would even accept a listing that they know deep down will not sell due to the price being way too high, but hey there's a reason why most agents are not good business people. If the sellers were smart they probably could have blown that property out for $1.5M+ a few years back instead of chasing the market down. The longer they wait, the lower the final sales price will be.
 
[quote author="graphrix" date=1253593617]<a href="http://www.redfin.com/CA/Newport-Beach/1930-Port-Seabourne-Way-92660/home/4718882">1930 PORT SEABOURNE WAY went back to the bank for $1.205M</a>. Looks like they never got around to the "online auction" and the bank beat them to it. I'm sure the bank feels like a winner too.</blockquote>
Not a bad looking home, too bad the lot wasn't a bit larger. Interesting how the owner was already prepared for this day as the mailing address for him is to a business address in Irvine.



Graph, you forgot to mention that WE are the winners and proud new owners of this property as the first mortgage lender is IndyMac with a loan of $1,462,500 so we all can share in the loss. Too bad National City's...errr PNC's second mortgage of $290,550 is now worth about as much money as the change in between my sofa cushions. Someone needs to let Freddy over at Power House know that the auction was a complete failure to hand over the keys to us.
 
You must log in or register to reply here.
Back
Top